Insurance companies currently insure assets, such as cars, homes, and lives through separate policies. The insurance for each asset is based on distinct characteristics regarding the asset or person/policyholder. For example, the policyholder is charged a premium that is calculated using traditional variables, such as age, gender, and geographic location. Such traditional variables are often out of the insured's control and fail to accurately capture an individual's personal risk.
In addition, the term of an insurance policy is often six months or a year, and is renewed on an annual or semi-annual basis. At each of the renewal times, rates are typically again determined based on the traditional variables at that annual or bi-annual time, and do not account for any of the insured's individual behaviors or specific asset characteristics. Such rates, therefore, also often fail to accurately capture an individual's personal risk, for example.
Further, these conventional methods of annually or semi-annually determining an insurance rate for each individual insurance policy of an insured, such as auto, home, and life, based on traditional variables are complicated and time consuming. In addition, at least for the reasons described above, calculating the insurance rate for each separate policy is typically an inaccurate representation of the one or more assets covered under each separate policy.